AirAsia Malaysia mandates Covid-19 vaccination for passengers
October 08, 2021
AirAsia Malaysia will only allow fully-vaccinated passengers to board its flights, effective immediately, as it prepares for a full resumption of domestic and international flight services. This is part of the airline’s Covid-19 mitigation plan "to ensure the highest safety standards for all guests and employees", it says in a 6 October statement. Guests under the age of 18, if unvaccinated or partially-vaccinated, must be accompanied by fully-vaccinated parents or guardian, the airline says. AirAsia Malaysia chief executive Riad Asmat states: “The decision to accept only fully vaccinated guests for boarding is made in the best safety interest of our guests and employees." Asmat adds that all its flights are operated only by fully-vaccinated pilots and cabin crew as well as ground operations and baggage handling staff.
BA revisits Gatwick short-haul plans
October 08, 2021
British Airways plans to "further develop" its plan to launch a short-haul subsidiary at London Gatwick following the successful conclusion of negotiations with pilot union BALPA. The carrier said in September that it would suspend short-haul operations at Gatwick and pursue "alternative uses" for the relevant slots after disclosing its plans for a new, lower-cost subsidiary had failed to secure support from pilots. BA comments that the new unit will be a full-service operation that will offer "competitive fares" to customers. "We will continue discussions with our colleagues, trade unions, suppliers and other stakeholders, following this positive result, and if we can agree a way forward with all parties, we would hope to begin operations next summer." An agreement with pilots is just one hurdle to overcome before any unit could be launched, with BA facing pressure from unions representing crews and other staff. On 6 October, the Unite union accused the carrier of adopting a "fire and rehire" employment strategy that it vowed to oppose. BA's plans at Gatwick are understood to comprise the establishment of a carrier whose services are indistinguishable from the airline's regular offering, but with lower costs to the business. In this regard, the subsidiary would operate similarly to the carrier's BA CityFlyer unit. The Oneworld carrier stopped operating short-haul flights out of Gatwick amid the pandemic in 2020. In September, the airline entered talks with unions over plans to create a new subsidiary for future short-haul operations out of Gatwick, to enable it to better compete with low-cost rivals.
Air Seychelles enters into reorganisation
October 07, 2021
Air Seychelles has entered into reorganisation with the appointment of two administrators, Bernard Pool and Suketu Patel of Pool & Patel Chartered Accountant, who will consider what carrier says will be the "optimum ways" of restructuring the company and settling its debts. During the company reorganisation, Air Seychelles will continue to operate normally with the same management and board of directors under the supervision of the administrators, who will prepare and present a rescue plan to the creditors, the main ones being the bondholders and the government, the airline and the Ministry of Transport say in a joint press statement on 5 October. This process is expected to take three to six months. Meanwhile, all the employees of Air Seychelles will remain in post and the operations of the airline will continue as before. Data shows that the African carrier operates a number of small regional aircraft along with one Airbus A320neo leased from CDB Aviation and another A320neo leased from Air Lease. The Covid-19 pandemic presented significant challenges to the Air Seychelles' business over the past 18 months, however, the airline's financial difficulties arise mainly due to significant debt that was incurred during its stewardship by Etihad Airways. This debt comprises amounts that were owed directly to Etihad and also loans of almost $72 million that were funded by the capital markets and are now controlled by bondholders of EA Partners, the joint statement read. The government of Seychelles, which owned the remaining 60% of shares in the Air Seychelles, has bought out Etihad's 40% shareholding, becoming the sole shareholder in the airline today. The government also negotiated a substantial discount debt of $70 million that was owed to Etihad. The government and Air Seychelles have been discussing with representatives of the bondholders of EA Partners but could not reach an agreement yet on terms for settling this debt that Air Seychelles can afford. The government's ability to assist Air Seychelles financially is also limited by the capping arrangements recently agreed with the International Monetary Fund whereby no further subsidy by government to Air Seychelles is permitted, the statement read. Meanwhile, the EA Partners bondholders have presented a petition for the winding up of Air Seychelles in order to exert pressure so that the bondholders can maximise their recoveries on their debt.